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Friday, 23 October 09
CIL PRICE HIKE LIKELY TO PUSH POWER RATES UP
 Business-Standard reported that, May squeeze cement companies’ margins, but the steel sector is unlikely to be affected much.
The upward revision of coal prices by government-owned Coal India Limited (CIL), which took place last week, is likely to have a divergent impact on the fossil fuel’s primary consumers such as cement, power and steel sectors. While cement makers’ margins will be under pressure, power producers will make a move to pass on the increased burden to consumers.The three sectors account for about 72 per cent of the total coal demand in the country.
On October 16, CIL increased the price of coal from Eastern Coalfields (ECL) and Bharat Coking Coal (BCCL) by 15 per cent, while all other subsidiary companies were permitted a hike of 10 per cent. This price increase is expected to swell CIL’s net profit by approximately Rs 2,000 crore this financial year and by about Rs 4,100 crore in the following year.
However, for the consuming sectors, especially the cement industry, the increase in coal prices will squeeze profit margins at a time when prices are already low due to rapid capacity augmentation.
Despite the fact that coal accounted for around two-thirds of the power and fuel cost, and 20 per cent of the total cost for cement manufacturers, firms would be unable to pass on the hike in coal prices to end users due to the current business environment, a report by Crisil Research suggested.
“The recent coal price hike will increase the cost of cement by Rs 3-4 a bag. However, this has been absorbed by manufacturers in the short-term. In the long run, though, if conditions are right, we could pass on the cost,” Cement Manufacturers Association President and Shree Cement Managing Director HM Bangur said. For the power sector, though, the impact of the upward revision of coal prices would be neutral, as the rise in cost of fuel would be passed on by the generators.
On an average, tariffs of power plants using domestic coal as fuel are expected to increase by 3-4 per cent. In rupee terms, the tariffs are expected to increase on an average by Rs 0.06 a unit. The rise is expected to increase the tariffs for final power consumers as the price hike will be passed on, the Crisil report further stated.
With the respective regulatory authorities of each state overseeing power tariffs, generators would first have to ascertain the increase in input costs and then approach the regulator for approval.
However, with the coal mixture of each generator differing, the choice being between CIL coal and that of the imported variety, it would take sometime before power utilities decide on the actual magnitude of the increase in tariff. “But 100 per cent, we will have to pass on the cost,” an official from the RPG’s power utility CESC said.
As for the steel industry, the Crisil report indicated that the coal price hike by CIL was not expected to have a significant impact on the steel industry as non-coking coal, which was primarily used by the sector, did not account for a significant portion of the total cost of steel manufacturing, except for steel made through the sponge iron route. Moreover, the dependence of domestic steel producers on CIL is only 25-35 per cent of their total requirement due to the availability of captive mines and imports. But Visa Steel Chairman and President of the Indian Chamber of Commerce Vishambhar Saran said the ex-pit head prices of CIL were already comparable to international prices, barring the freight factor cost. “The cost of setting-up a plant is higher if one is to use domestically available coal as compared to imported coal. This is because the former is of inferior quality and consequently extra costs such as ash disposal must be counted into the total project cost,” he added.
Source: Business-Standard
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Wednesday, 21 October 09
INDONESIA'S BUKIT ASAM GETS COAL RAILWAY APPROVAL
Reuters reported that, Indonesian state coal miner PT Tambang Batubara Bukit Asam Tbk said on Wednesday it had been given government approval to sta ...
Wednesday, 21 October 09
COAL DEMAND SOARS AS ASIA ECONOMIES REBOUND - PEABODY
Reuters reported that, Demand for coal to generate electricity and make steel in China and India is expected to grow by 7 percent to 8 percent annua ...
Wednesday, 21 October 09
INDONESIAN SHOCK FOR INDIAN POWER PLANTS
Business-Standard reported that, India’s ambitious plans to generate an additional 180,000 Mw of power in the next seven years will face hurdl ...
Wednesday, 21 October 09
DUTA GRAHA PLANNING TO DELVE INTO MINING SECTOR
The Jakarta Globe reported that, PT Duta Graha, one of the country’s largest private engineering firms, says it intends to diversify into the ...
Tuesday, 20 October 09
RECAPITAL SET TO BUY INDONESIA'S BERAU COAL - SOURCES
* COULD PAY AT LEAST $1.3 BLN FOR BERAU - SOURCES
* RECAPITAL CONFIRMS IT HAS BID FOR BERAU
* BAKRIE GROUP LIKELY TO BACK BID – SOURCES
...
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Neyveli Lignite Corporation Ltd, - India
- MS Steel International - UAE
- Africa Commodities Group - South Africa
- AsiaOL BioFuels Corp., Philippines
- Mercuria Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Ministry of Mines - Canada
- PTC India Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Kepco SPC Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Singapore Mercantile Exchange
- Australian Coal Association
- Cigading International Bulk Terminal - Indonesia
- Manunggal Multi Energi - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Ind-Barath Power Infra Limited - India
- Electricity Generating Authority of Thailand
- Timah Investasi Mineral - Indoneisa
- Aditya Birla Group - India
- Eastern Energy - Thailand
- Iligan Light & Power Inc, Philippines
- Miang Besar Coal Terminal - Indonesia
- Makarim & Taira - Indonesia
- Jaiprakash Power Ventures ltd
- Trasteel International SA, Italy
- Siam City Cement PLC, Thailand
- Sindya Power Generating Company Private Ltd
- Malabar Cements Ltd - India
- Indika Energy - Indonesia
- Electricity Authority, New Zealand
- Thiess Contractors Indonesia
- Parry Sugars Refinery, India
- Rio Tinto Coal - Australia
- Indian Energy Exchange, India
- Meralco Power Generation, Philippines
- Bayan Resources Tbk. - Indonesia
- White Energy Company Limited
- Chettinad Cement Corporation Ltd - India
- Latin American Coal - Colombia
- SMG Consultants - Indonesia
- Attock Cement Pakistan Limited
- Sojitz Corporation - Japan
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Karaikal Port Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- VISA Power Limited - India
- Indian Oil Corporation Limited
- Heidelberg Cement - Germany
- The University of Queensland
- Interocean Group of Companies - India
- Mjunction Services Limited - India
- Global Green Power PLC Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Globalindo Alam Lestari - Indonesia
- Merrill Lynch Commodities Europe
- IHS Mccloskey Coal Group - USA
- Pipit Mutiara Jaya. PT, Indonesia
- Star Paper Mills Limited - India
- Georgia Ports Authority, United States
- Goldman Sachs - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Gujarat Electricity Regulatory Commission - India
- Oldendorff Carriers - Singapore
- Power Finance Corporation Ltd., India
- Indo Tambangraya Megah - Indonesia
- South Luzon Thermal Energy Corporation
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercator Lines Limited - India
- McConnell Dowell - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Videocon Industries ltd - India
- IEA Clean Coal Centre - UK
- Orica Australia Pty. Ltd.
- Posco Energy - South Korea
- Standard Chartered Bank - UAE
- Banpu Public Company Limited - Thailand
- Chamber of Mines of South Africa
- Lanco Infratech Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Straits Asia Resources Limited - Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bangladesh Power Developement Board
- Dalmia Cement Bharat India
- Kaltim Prima Coal - Indonesia
- International Coal Ventures Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Tata Chemicals Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Bharathi Cement Corporation - India
- Parliament of New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Grasim Industreis Ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- Energy Development Corp, Philippines
- Kapuas Tunggal Persada - Indonesia
- Essar Steel Hazira Ltd - India
- The Treasury - Australian Government
- Antam Resourcindo - Indonesia
- Vedanta Resources Plc - India
- Energy Link Ltd, New Zealand
- Commonwealth Bank - Australia
- New Zealand Coal & Carbon
- Bhushan Steel Limited - India
- The State Trading Corporation of India Ltd
- Ambuja Cements Ltd - India
- Medco Energi Mining Internasional
- Planning Commission, India
- Rashtriya Ispat Nigam Limited - India
- Mintek Dendrill Indonesia
- Sarangani Energy Corporation, Philippines
- Economic Council, Georgia
- Independent Power Producers Association of India
- Therma Luzon, Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Eastern Coal Council - USA
- Larsen & Toubro Limited - India
- Salva Resources Pvt Ltd - India
- SMC Global Power, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Carbofer General Trading SA - India
- Jindal Steel & Power Ltd - India
- ICICI Bank Limited - India
- Orica Mining Services - Indonesia
- ASAPP Information Group - India
- India Bulls Power Limited - India
- Metalloyd Limited - United Kingdom
- Marubeni Corporation - India
- Kartika Selabumi Mining - Indonesia
- Riau Bara Harum - Indonesia
- Tamil Nadu electricity Board
- Bukit Makmur.PT - Indonesia
- Coal and Oil Company - UAE
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- Central Electricity Authority - India
- Bulk Trading Sa - Switzerland
- Alfred C Toepfer International GmbH - Germany
- Directorate General of MIneral and Coal - Indonesia
- LBH Netherlands Bv - Netherlands
- Petron Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- CNBM International Corporation - China
- Bhoruka Overseas - Indonesia
- Minerals Council of Australia
- Uttam Galva Steels Limited - India
- Wood Mackenzie - Singapore
- Sical Logistics Limited - India
- PNOC Exploration Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Kideco Jaya Agung - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Global Business Power Corporation, Philippines
- Wilmar Investment Holdings
- Romanian Commodities Exchange
- Sakthi Sugars Limited - India
- SN Aboitiz Power Inc, Philippines
- GVK Power & Infra Limited - India
- Leighton Contractors Pty Ltd - Australia
- Bahari Cakrawala Sebuku - Indonesia
- PowerSource Philippines DevCo
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- London Commodity Brokers - England
- Maheswari Brothers Coal Limited - India
- Formosa Plastics Group - Taiwan
- Intertek Mineral Services - Indonesia
- Port Waratah Coal Services - Australia
- Edison Trading Spa - Italy
- GN Power Mariveles Coal Plant, Philippines
- Holcim Trading Pte Ltd - Singapore
- TeaM Sual Corporation - Philippines
- Cement Manufacturers Association - India
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- Ministry of Finance - Indonesia
- Kobexindo Tractors - Indoneisa
- Kalimantan Lumbung Energi - Indonesia
- Semirara Mining Corp, Philippines
- Australian Commodity Traders Exchange
- Deloitte Consulting - India
- Simpson Spence & Young - Indonesia
- Gujarat Sidhee Cement - India
- Central Java Power - Indonesia
- Thai Mozambique Logistica
- Coalindo Energy - Indonesia
- Savvy Resources Ltd - HongKong
- CIMB Investment Bank - Malaysia
- Price Waterhouse Coopers - Russia
- Sree Jayajothi Cements Limited - India
- Siam City Cement - Thailand
- Anglo American - United Kingdom
- Coastal Gujarat Power Limited - India
- Altura Mining Limited, Indonesia
- Agrawal Coal Company - India
- Ministry of Transport, Egypt
- Vijayanagar Sugar Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Vizag Seaport Private Limited - India
- Baramulti Group, Indonesia
- Borneo Indobara - Indonesia
- GMR Energy Limited - India
- GAC Shipping (India) Pvt Ltd
- Sinarmas Energy and Mining - Indonesia
- Indonesian Coal Mining Association
- Madhucon Powers Ltd - India
- Indogreen Group - Indonesia
- Toyota Tsusho Corporation, Japan
- Asmin Koalindo Tuhup - Indonesia
- San Jose City I Power Corp, Philippines
- Bhatia International Limited - India
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